Epic Video games has introduced it’s shedding roughly 16 p.c of its workforce, leading to round 830 workers dropping their jobs.
In a assertion posted by Epic president Tim Sweeney, he explains the layoffs as a cost-cutting measure that can embrace divesting Bandcamp, which it acquired final 12 months, and spinning off promoting platform SuperAwesome into an impartial firm. Epic had acquired SuperAwesome in 2020. 250 individuals can be leaving Epic because of these divestitures.
“For some time now, we have been spending far more cash than we earn, investing within the subsequent evolution of Epic and rising Fortnite as a metaverse-inspired ecosystem for creators,” Sweeney writes in his assertion. “I had lengthy been optimistic that we may energy via this transition with out layoffs, however looking back I see that this was unrealistic.”
Sweeney then explains that regardless of taking steps to cut back prices, resembling scaling again on advertising and occasions, Epic nonetheless fell wanting reaching monetary stability and that layoffs had been the one answer. Sweeney states that two-thirds of the terminations come from groups exterior of core improvement and that these departures won’t come on the expense of recreation improvement or strains of enterprise. Sweeney additionally says this would be the solely spherical of layoffs and that Epic will nonetheless be hiring for “crucial roles.” Improvement of content material for titles resembling Fortnite, Fall Guys, and Rocket League will proceed as deliberate.
Impacted workers will obtain severance packages of six months of base pay and 6 months of Epic-paid healthcare for employees based mostly within the U.S., Canada, and Brazil. Epic will supply employees the choice to speed up inventory choices vesting schedules via the top of 2024 whereas including two further years from right this moment to make use of these choices. U.S. workers may also vest any unearned revenue sharing from their 401k. Lastly, Epic will present profession transition companies and Visa assist.
An enormous firm assembly is scheduled for subsequent month to debate the corporate’s efforts and priorities. These layoffs come just some weeks after Epic’s Chief Inventive Officer and Fortnite head Donald Mustard introduced his retirement.
